Authored on: May 11, 2012
With a 12.5% annual customer churn rate, the average financial services firm is losing a lot of current, future, and referral income - and that's not counting the cost of acquiring new customers. Loyal customers provide a greater share of business, refer more prospects, and cost less to serve than new or disgruntled customers.
While some degree of customer turnover is inevitable, integrated CRM with loyalty management capabilities can help overcome the challenges of fragmented customer service, limited differentiation, and increased competition for valuable customers. Financial services organizations are implementing enterprise integrated CRM to:
- shift to a customer-centric service model
- segment customers by their value to the company
- identify customers at risk of churn
- seamlessly embed personalized interactions and consistent service into company processes to increase the loyalty and engagement of customers across the enterprise
This paper provides six ways integrated CRM can improve customer loyalty to reduce customer churn and increase profitability.